Personal Finance

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Phobic Life After Using College Student Loans

When a student and his or her parents opt for these federally or privately offered college student loans, a few think about the life after four years or whatever number a given course takes.

The psyche right then is acquiring the best and affordable loan funds for the child to get education.

In this era of unemployment though, the aftermath of these college loans may be adverse on a number of students.

Education is struggle in the first place, but being jobless or securing meagerly paid jobs later after college can severely hurt.

This is why students are leading a phobic life after they leave college because there is quite a huge amount of loan to clear, yet the employers seems to shut the doors to their companies as students shut theirs from college.

Those who paid from their pockets celebrates

College funds needed to secure quality education in a highly recognized university or college are a lot, which is why the federal and private loans are provided.

Those who apply for college loans have the benefits of being financially equipped while learning, but the burden to pay back everything plus interest comes in later after school.

Those who fund their education right from their pockets are financially strained while attending classes but after they graduate, they have no debts to any one.

Not relying on any student loan is not easy because it means working extra jobs and hours while trying to keep your school work balanced.

However everything in life depends on how determined and focused a person is to achieve his objectives in life.

In fact those people who become prosperous in a lot of things they have done have had to sacrifice a lot of resources not to mention their own health.

Some of those who applied for student loans lead a fearful life

I do not know about you, but the greatest fear an adult have is being unable to provide for oneself and family-financial failure.

Whereas many fresh graduates express high expectations to acquire a job after school, just a few of them are able to survive the intense competition in the job market.

One may wonder why the government insists on schooling yet a lot of knowledgeable individuals become wasted later in life.

This is especially so in third world countries where not even part-time or even those lowly paid jobs are easier to come by.

What is more, some employers there deny these optimistic fresh graduates an opportunity to learn and gain practical skills in their organizations.

Some of the few, who does, takes advantage of the interns assuring them that the more they stay in their firms, the higher is their chances of employment.

After using lots of student loans, perhaps the only decision this kind of fresh graduate can make is consolidating them in to one easily payable loan.

But then, if he or she is not guaranteed of any employment or at least one reliable to start paying back the loan, what is expected of him or her except an early heart attack and depression?

The other viable option is entrepreneurship, but this demands starting capital. The government may offer those small and medium enterprises loan, but there is a qualification criterion.



January 28, 2010 Posted by | College And University | , , , , , , , , , | Comments Off on Phobic Life After Using College Student Loans

Business Credit Foundation

With the rapid change in the financial world everything related to finance is changing – be it credit facilities or investments. Steps are being taken to make everything simple, convenient and fast. There is a consensus among financiers that businesses have different financial requirements and there is a need to efficiently resolve them. One such step taken by these which may help businesses, small or big is to establish business credit. Business credit is an option which you can avail of where financial institutions provide business loans without needing the credit rating or the personal assets of the owner as a security. And most importantly, organizations of every size and age can avail of such a facility business financing whether it’s old or new, big or small. Whether you need a finance for setting up a business, expanding your business, purchasing material or equipment or advertising, business credit is always there for you.

How to Establish Business Credit

There are various steps of establishing business credit. The first point you should remember while establishing business credit is to ensure strong fundamentals of your business. Moreover, you should also take care to see to it that you meet the requirements of financiers. Ensuring this would make listing of your business with the business credit agencies easier.

The next step to establish business credit is to develop a business connection with suppliers and vendors. These suppliers and vendors should be such that they not just extend credit payments, but most importantly, report the history of your payments to business credit agencies. You need to have the backing of at least five such vendors and they should not tie your personal guarantee or social security number while giving you such credit.

Obtaining business credit cards is the next step to establish business credit. You should get three such cards, but make sure that they are not connected to your personal credit. Moreover, you should also see to it that these credit card companies report your transactions and payment history to business credit agencies. However, unluckily there are not many types of business credit cards which would consider approval without checking your personal credit report. In such a scenario, you should look around and search for such a card. Take your time in this step as it can be crucial, for, in case you are not able to pay your corporate bills on time, your personal credit would nosedive, even if you have an excellent personal credit history. Similarly, if your business credit history is excellent, but your personal credit rating is not that good, it would affect your business ratings. So, it’s absolutely important to segregate your personal credit to your business credit. Once these steps are done, you can then opt to use these references so as to obtain bigger credits.

How to Establish Business Credit for the First Time

Today, suppliers and creditors are increasingly checking not only your personal credit but also your business credit reports to decide on how much to lend and at what rate. That’s the reason it has become necessary to set up a separate report for businesses. In case you have set up your business for the first time and still haven’t set up business credit, you can opt to get trade lines so that you can start building your credit report. You may Incorporate or apply for a Limited Liability Company so that your business seems as a separate entity. You can also get an Employer Identification Number from the Federal Government. Open up a business bank account in the name of your business. Moreover, a dedicated business phone line would do you a whole lot of good, but make sure that you list it. Once these steps are done, you can ask for business credit in the name of your company and start building a good credit score.

How to Establish Business Credit With Bad Personal Credit

Even if, you have a bad credit history it is still possible to establish business credit. For this, you should legally separate yourself from your business. If you don’t opt for this and you apply for a business credit, your social security number would be used and your bad personal credit would come in the way of you getting a good deal. For separating your personal finances from your business you need all the necessary licenses and most importantly apply for a tax ID number.

You need to start small as getting a business loan is easier for a start up business without credit history, in case you have dropped your personal credit. Build your credit over time, paying off the amount you have borrowed on time and making the required payments on time.

You should not only concentrate on building the credit score of your business but you should also see to it that you work on rebuilding your personal credit. Ultimately, you may need to approach a larger financier for a bigger loan and in such cases, financial institutions look at not only at your business credit but also at your personal credit.

Thus, the most important thing to remember, like all kinds of credit, you should try and make your payments on time so that you can establish business credit fast. Hope, this article has given you an overview of business credit and the necessary steps of building up a good credit score.

January 27, 2010 Posted by | Business, Credit Score, Online Business | Comments Off on Business Credit Foundation

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January 27, 2010 Posted by | Uncategorized | 1 Comment